Arizton projects global data center market to reach $959.19 billion by 2031
Research reports from Arizton and ResearchAndMarkets point to strong data center growth globally, in Europe and Southeast Asia, driven by AI, hyperscale and cloud demand, colocation expansion, and adoption of liquid cooling and sustainability-focused infrastructure.
Arizton said the global data center market was valued at $514.26 billion in 2025 and is forecast to reach $959.19 billion by 2031, implying a 10.95% CAGR, with AI workloads, hyperscale spending, and liquid cooling adoption driving growth. In a separate Europe-focused report, Arizton projected the Europe data center colocation market by investment would rise from $11.65 billion in 2025 to $46.51 billion by 2031 at a 25.94% CAGR, with Western Europe expected to account for $33.17 billion, or 71.3%, of regional investment by 2031. ResearchAndMarkets separately projected the Southeast Asia data center colocation market would grow from $5.76 billion in 2025 to $13.69 billion by 2031 at a 15.5% CAGR. Across the reports, AI workloads, cloud demand, higher rack densities, cooling efficiency, renewable energy use, and backup power resilience were highlighted as key themes shaping data center development.
- liquid cooling: A data center cooling method that uses liquid rather than only air to remove heat more efficiently, especially for AI and high-density computing workloads.
- colocation: A data center model in which customers rent space, power, and connectivity for servers in a third-party facility.
- rack power densities: The amount of electrical power used by equipment installed in a server rack, with higher densities requiring more advanced cooling and power systems.